WEBVTT

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Coming . I'm Christopher Sherwood OSD

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Public Affairs Days . Briefing is on

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the Department of Defense's fiscal year

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2024 budget request . Speaking with you

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today at the under secretary , Defense

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controller Chief Financial Officer

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Michael J mccord , and Director for

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structure resource and Assessment with

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joint staff , Vice Admiral Sarah , a

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joiner . They will provide opening

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remarks and take a few questions .

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Attribution is on the record . Probably

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asking your question . Please state

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your name and your affiliation . Please

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limit your questions to one and one

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follow up . I will let you know when

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we're nearing the end and there's time

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for one last question with that is my

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pleasure to introduce the honorable

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Mike mccord and Vice Admiral Sarah

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Joyner . Thank you Chris and thanks

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everyone for being here today uh by

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Simon Joyner and I'll be giving ,

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giving overview and then after that ,

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we'll take questions . So before I talk

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about the contents of the budget , I

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just want to take a minute to thank the

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people who made it the high quality

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product that it is . I want to start by

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thanking the secretary and the deputy

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secretary for their leadership . Uh and

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Secretary Hicks in particular and

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Admiral Grady for their leadership of

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the very comprehensive Department wide

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review process that we go through over

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a period of months . I think you just

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got a flavor from the deputy's remarks

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uh of the vision and the drive that she

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has in leading our construction of this

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budget . I also want to thank Cape

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Director Susanna Blume , who is uh a

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superb integrator and thought leader

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throughout this process . She has been

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a partner to Admiral Joiner and I every

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step of the way she is ill today and

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not with us here today . But she has

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been ably assisted by Joan Agora who

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just retired Mike Pain and the whole

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cape team on my team , nobody works

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harder or longer to get a quality

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budget across the finish line than our

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deputy Comptroller and mcandrew who

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leads my team and is sitting right

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there . Um So , and there's also many

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others in the services in the combatant

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commands across duty to contribute some

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of whom I see all the time and you'll ,

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you'll see them follow us today here on

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the , on this , in this room and some

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of whom I will never meet out in the

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field . So it takes , it takes a real

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team to do this . So with that , let me

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get to the budget , I want to make

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three million points before I go into

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any slides . First to me . One of the

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big themes of this budget is continuity .

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This is our third budget of this

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administration . It's based on the same

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national defense strategy we submitted

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11 months ago . So there's no big

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surprises in here . I don't think

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everything we cared about and funded in

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last year's budget , which was released

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contemporaneously with the NDS is

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funded and we care about still in this

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budget . Second , the thing that is

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newest and biggest and we've already

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heard about this a little bit is

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probably munitions . This is , this is

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new and sense of the emphasis in this

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budget . But we've been talking with

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our committees about it and I think

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we've been talking with some of you

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about it for at least six months . So

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Ukraine has really informed and

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highlighted the need to up our game

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here . So we'll talk about that as we

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go through . We are for the first time

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ever expanding the Multiyear

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Procurement Authority , which has been

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in law for decades beyond platforms

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like ships , airplanes and helicopters

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into the munitions , munitions and

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missile space . Following up on the

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authorities we were given in this area

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in the , in the National Defense

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Authorization Act last late last year .

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Third main point as in the , as was the

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case with last year's budget . The

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focus here is making our military more

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capable , not making it larger . You

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won't see a lot of force structure

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changes in this budget . And finally ,

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Ukraine support above the pre conflict

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levels is not in this budget . Uh The

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situation remains to fluid . Uh the way

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we're handling , this is the way we've

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handled every emerging operation in the

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last 50 years . And that is

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supplementals . So that is what we're

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doing in 23 . That would be the plan

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for 24 . So with that , let me go to

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the first slide on the strategy vice

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chairman kind of touched on this . Uh

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The strategy of Secretary Austin says

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is our North star . The point of this

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budget is to expand our implementation

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of the N D s and go further in the same

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direction , not go in new directions .

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So we've been working actively to

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implement this strategy . A big part of

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that is linking the strategy of the

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resources . That's what our review is

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all about . You heard about that from

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the deputy secretary and the vice

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chairman . You're going to continue to

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hear from us . I won't read this to you .

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I think you all are familiar with this

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again . This , this strategy remains

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focused on the P R C . Uh what happened

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in Ukraine has not changed that . Um So

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the four priorities the vice chairman

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noted remain important to us . And uh

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let me next turn to the budget itself .

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The top line broken up by a major

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military department components . Uh The

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budget is driven by and vital to the

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execution of our strategy and the both

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the national security strategy and the

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N D s . Uh We was built in a thoughtful

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way to align those to the secretary

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that is his top priority with us is

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making sure that we are implementing

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his strategy , not doing anything else

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in this budget . Um The top line itself ,

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842 billion is $26 billion or

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3.2% more than what congress enacted

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last year . It's closer to 9% more than

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what we requested last year . And it's

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basically $100 billion higher than what

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we had just two years ago . This budget

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represents a 0.8% real growth . So just

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under 1% real growth over Fy 23 enacted

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level , which included as you recall ,

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a fairly substantial congressional

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increase of $43 billion

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$26

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billion . When I give you that real

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growth calculation that assumes assumes

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a GDP inflation rate for FY20 for next

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year compared to this year of 2.4% as

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directed by OMB . This applies to the

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goods and services we buy , we can talk

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about this later but pay raises and

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other items such as housing costs are

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adjusted by separate factors . The 2.4

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doesn't literally apply to everything

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in this budget . I will also just make

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a note that there's a footnote there .

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You probably can't read from here that

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the Chips Act which is a big uh

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congressional action last year . Is

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technically a different kind of funding

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than the regular discretionary budget .

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It's a small amount of money , $400

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million but important and it is

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additive to these numbers . Uh Let me ,

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let me turn next to this chart which

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kind of sketches out what our plan is

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over the next five years over the next

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five years . Fy 24 through 28 are , are

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fit up years for this budget . We are

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at $297 billion so we could perhaps

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round that to $300 billion higher on

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the top line than we were just a year

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ago in the plan that we submitted to

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Congress last year For the out years .

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As I said , the for this year , the the

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budget is , is an increase of 3.2% over

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what Congress enacted last year for the

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out years that increase grows at the

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rate of inflation as predicted as

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projected by OMB . So that's why that

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out your profile has a steady slope .

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It's , it's , it's uh the O and B

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assumptions that drive that . So over

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the last two years , going from this

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administration's first budget fy 22 to

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where we are now , the president has

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agreed to give us $100 billion per year ,

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additional resources , implement the

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NDS with urgency . So we are putting

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our money where our strategy is and our

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efforts together with support of

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Congress are really moving the needle ,

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you know , as the deputy said , outputs

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are what matter , $100 billion a year .

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However , is real progress . The budget

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alone does not deter anyone but you get

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that returns from capability . Capacity

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will alliances many other factors . But

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without the capacity and capability

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that is funded in a budget , it's hard

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to make things real . So , so the

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budget is an important contributor to

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the outputs that the deputy was talking

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about . Again , as she said , if we get

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the funding on time , As she noted ,

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we've lost 51 months if you're counting .

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And I do stuck in crs over the last 13

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years , over four years . Uh so that

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effectively has shrunk the fiscal year

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in a sense from 12 months to eight

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months over the last decade plus . And

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that is something a path that we don't

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want to continue on . We do like the

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path on that chart , but we don't like

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the path of the timing that kind of

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underlies it . So um let me now next

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chart just to give you a little bit of

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a , a rundown on how the top line has

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looked over the last dozen or so years ,

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mainly the budget Control Act era ,

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which is kind of spans the whole middle

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of that chart . You can see how it

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dropped down and it's come back up . Uh

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You can see also that again , the the

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old concept of uh OCO funding which was

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phased out at the start of this

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administration is the red bars on top .

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We are past that now . Um Although

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those activities in Central Command ,

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of course , our continued now have been

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moved into the base budget . And again ,

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you can see kind of how , how the

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budget control act impacted us . We're

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certainly in a better place now , as

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evidenced by the way the top line has ,

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has and the support has grown the last

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couple of years . Uh given our security

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challenges , we think that's

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appropriate . And I for one certainly

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hope we don't see a revival of the

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approach of arbitrary funding cuts that

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we experienced during my first tour

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here . Um Next , this goes back to my

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earlier comment that our and strength

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remains largely stable and consistent

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with what was anticipated a year ago

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and what was authorized . We have a

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slight increase about 12,000 , about

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9000 in the active side , mostly Navy

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Air Force , about 3000 on the reserve

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side , the army and strength , what you

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see there ,

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this is the bell strength as you know ,

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kind of has two aspects . There's

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recruiting challenges which many of you

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are aware of and the incredibly strong

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retention . Uh Granted those two are

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not perfect substitutes for each other .

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So you , they are separate things that

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have to be looked at separately , I

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will say on the recruiting side , uh I

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think you already probably know this

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but these are the lowest unemployment

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rates . In the 50 year history of the

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All Volunteer Force , there has always

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been a correlation , an inverse

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correlation between The , the the job

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market on the outside and our ability

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to recruit last year calendar 20-3.6% .

10:13.480 --> 10:15.702
Again , the lowest unemployment rate in

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over 50 years and it stayed that it's

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staying that low in the first parts of

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this calendar year . So that remains a

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tough environment . Uh nevertheless ,

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retention is strong . Um Again , we we

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can talk about some of the specifics as

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the services , the military departments

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come along later today to talk about

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how they're in strength increases tied

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to particular programs , whether on the

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on the soldier side or on the platform

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side , such as realigning Casey tends

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to KC 46 is but overall a fairly stable

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picture on the size of the military .

10:47.790 --> 10:49.957
Again , we're about capability in this

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budget with that . Let me turn it over

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to the Admiral Joiner to talk about

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some of those capability increases .

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Thank you , Mr mccord . Good morning .

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The budget requests aligns with the

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strategic guidance and balances

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department priorities to maintain a

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ready lethal and combat credible joint

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force . It represents the largest

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procurement and R and D levels ever for

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the D O D . We will invest over $61

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billion to develop , modernize and

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procure lethal air forces . Our request

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includes 83 joint strike fighters , 24

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F , 15 E X s in 15 K C

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46 tankers . Additionally , the budget

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continues next generation air dominance

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and future vertical lift platform

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developmental efforts . The

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department's $48.1 billion request in

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sea power funds key investments

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critical to our national defense

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including one Columbia class submarine

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to Virginia class , submarines to early

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burke destroyers to constellation class

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frigates that bring greater capability

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to our maritime force . The fy 24

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requests also incrementally funds for

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class nuclear aircraft carriers in

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future Columbia class ballistic

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submarines . Finally , the $13.9

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billion request for land power funds ,

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procurement of 80 amphibious combat

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vehicles for the Marine Corps , 91

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armored multi purpose vehicles for the

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army and also invest nearly $1 billion

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in R and D efforts for the optionally

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manned fighting vehicle , which is the

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replacement for the Bradley fighting

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vehicle altogether . Our historical

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investments and platforms and systems

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across the air sea and land domains

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will increase the lethality of our

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joint force , enhance our ability and

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enhance our ability to deter threats .

12:42.697 --> 12:46.530
Well into the future nuclear weapons

12:46.530 --> 12:48.820
continue to provide foundational

12:48.820 --> 12:50.876
strategic deterrent effects that our

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nation and our allies and partners have

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relied on for decades . The fy 24

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budget request increases funding for

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modernization and recapitalization of

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all three legs of the nuclear triad .

13:04.890 --> 13:07.640
For example , this budget includes

13:07.650 --> 13:10.760
$5.3 billion to continue development

13:10.760 --> 13:13.350
and procurement of the B 21 program .

13:13.730 --> 13:16.150
$6.2 billion for the production of the

13:16.150 --> 13:18.480
Sec's second Columbia class ballistic

13:18.480 --> 13:21.810
submarine . Also fy 24 is the first

13:21.810 --> 13:24.530
year of advanced procurement funding

13:24.530 --> 13:26.850
for the Sentinel missile program to

13:26.850 --> 13:29.400
obtain long lead items for initial

13:29.400 --> 13:31.830
production launch . As Mr mccord

13:31.830 --> 13:34.210
mentioned the national defense strategy

13:34.210 --> 13:36.490
in our national leadership made clear

13:36.490 --> 13:38.950
that our highest defense priority is to

13:38.950 --> 13:41.550
protect the homeland and deter attack

13:41.550 --> 13:44.230
on the United States . China and Russia

13:44.230 --> 13:46.286
are fielding conventional long range

13:46.286 --> 13:48.690
and hypersonic weapons with the

13:48.690 --> 13:50.690
capability to threaten our allies .

13:50.690 --> 13:53.610
Partners and us forces from extended

13:53.610 --> 13:57.200
standoff ranges . Therefore , the fy 24

13:57.200 --> 14:00.780
budget invests $29.8 billion to

14:00.780 --> 14:03.330
enhance us missile defense capabilities

14:03.340 --> 14:06.120
to defend the homeland deployed forces

14:06.120 --> 14:08.064
and allies and partners against an

14:08.064 --> 14:10.900
increasingly complex adversarial threat .

14:11.320 --> 14:13.320
The budget increases investments in

14:13.320 --> 14:15.264
missile defense sensors to enhance

14:15.264 --> 14:17.264
domain awareness , regional missile

14:17.264 --> 14:20.180
defense networks , hypersonic weapons

14:20.190 --> 14:23.530
and defenses , space based systems and

14:23.530 --> 14:25.474
additional short range air defense

14:25.474 --> 14:27.965
battalions . And if I finally , the fy

14:27.965 --> 14:30.445
24 budget request includes additional

14:30.445 --> 14:32.389
investments for the defense of the

14:32.389 --> 14:35.335
United States and territories including

14:35.335 --> 14:37.375
all domain situational awareness

14:37.375 --> 14:39.665
capabilities for the continental United

14:39.665 --> 14:42.090
States , Alaska and Hawaii .

14:44.710 --> 14:47.640
Our FY 24 budget request includes $11

14:47.640 --> 14:49.807
billion dollars to develop and procure

14:49.807 --> 14:51.584
the proper mix of highly lethal

14:51.584 --> 14:53.860
precision weapons . This budget

14:53.860 --> 14:56.082
continues the development , testing and

14:56.082 --> 14:59.150
procurement of hypersonic missiles and

14:59.150 --> 15:02.060
other long range fires . Extensive

15:02.060 --> 15:04.004
hypersonic prototyping and testing

15:04.004 --> 15:05.949
efforts have helped the department

15:05.949 --> 15:08.180
overcome technological challenges prior

15:08.180 --> 15:10.030
to feeling hypersonic weapons .

15:10.140 --> 15:13.060
Additionally , this budget maximizes

15:13.060 --> 15:15.310
joint air to surface standoff missile ,

15:15.420 --> 15:17.880
jazz um and long range anti ship

15:17.880 --> 15:20.820
missile or ASM and standard missile ,

15:20.830 --> 15:23.450
also known as SM six capacity through

15:23.450 --> 15:26.460
multiyear procurement enhancements to

15:26.460 --> 15:28.682
the munitions industrial base will grow

15:28.682 --> 15:31.220
future production capacity and result

15:31.220 --> 15:33.900
in savings for the department . These

15:33.900 --> 15:36.011
substantial investments will grow the

15:36.011 --> 15:38.280
department's advanced offensive fires

15:38.280 --> 15:41.080
capability and field multi domain

15:41.080 --> 15:43.710
hypersonic capabilities from air land

15:43.720 --> 15:45.887
and sea platforms beginning in the mid

15:45.887 --> 15:48.290
20 twenty's in order to achieve maximum

15:48.290 --> 15:50.570
deterrent effect against a peer .

15:50.570 --> 15:54.360
Adversary space

15:54.360 --> 15:57.070
capabilities are a critical component

15:57.220 --> 15:59.520
of U S military power projection and

15:59.520 --> 16:02.060
integrated deterrence . China and

16:02.060 --> 16:04.570
Russia continue to feel weapons field

16:04.570 --> 16:06.737
weapons that could deny or destroy our

16:06.737 --> 16:09.020
space capabilities to meet these

16:09.020 --> 16:11.187
potential threats . The budget invests

16:11.187 --> 16:12.280
over $33 billion

16:12.290 --> 16:18.490
Degrade

16:18.490 --> 16:20.890
gracefully under attack and be

16:20.890 --> 16:23.320
reconstituted in a reasonable time when

16:23.320 --> 16:25.920
required . The budget also builds

16:25.920 --> 16:28.087
capabilities that can defeat adversary

16:28.087 --> 16:30.370
space systems , especially those that

16:30.370 --> 16:33.140
target our joint force . Our budget

16:33.140 --> 16:35.251
improves missile warning capabilities

16:35.251 --> 16:37.473
to detect advanced threats by investing

16:37.473 --> 16:38.100
$5 billion

16:38.100 --> 16:41.540
space-based

16:41.590 --> 16:43.470
missile warning and tracking

16:43.470 --> 16:45.960
architecture along with resilient next

16:45.960 --> 16:48.240
generation ground control segment .

16:48.980 --> 16:51.120
This request also invest $4 billion

16:51.120 --> 16:53.940
dollars to develop secure survivable

16:53.950 --> 16:55.610
and jam resistant satellite

16:55.610 --> 16:57.666
communication capabilities for joint

16:57.666 --> 17:00.470
and allied forces . Finally , the

17:00.470 --> 17:03.400
budget includes almost $3 billion 15

17:03.400 --> 17:05.710
space vehicle launch vehicles to

17:05.710 --> 17:08.590
provide assured access to space and

17:08.590 --> 17:10.812
funds infrastructure projects that will

17:10.812 --> 17:12.701
help modernize our space . Launch

17:12.701 --> 17:15.510
ranges to support increased commercial

17:15.620 --> 17:17.064
and government launches .

17:20.140 --> 17:22.710
The fy 24 budget request reaffirms the

17:22.710 --> 17:24.630
department's enduring cyberspace

17:24.630 --> 17:27.470
missions , defend the D O D Information

17:27.470 --> 17:30.110
Network , defend the nation and prepare

17:30.110 --> 17:32.540
to fight and win the nation's wars .

17:32.550 --> 17:34.494
With this budget request , we will

17:34.494 --> 17:36.690
continue to modernize network defense

17:36.700 --> 17:38.950
capabilities to build a secure and

17:38.950 --> 17:40.840
resilient cyber architecture .

17:41.350 --> 17:43.790
Specifically , this budget invests

17:43.800 --> 17:46.920
$13.5 billion dollars to fund programs

17:46.920 --> 17:48.760
and activities that advance

17:48.770 --> 17:51.980
cybersecurity , cyberspace operations

17:52.030 --> 17:53.808
and advanced cyber research and

17:53.808 --> 17:56.530
development activities . The request

17:56.530 --> 17:58.720
provides commander of U S cyber com

17:58.720 --> 18:01.450
with enhanced authority direction and

18:01.450 --> 18:04.130
control of a $3 billion budget to

18:04.140 --> 18:07.410
organize train and equip the joint

18:07.410 --> 18:10.000
cyber force , joint cyber space

18:10.000 --> 18:11.500
warfighting architecture ,

18:11.500 --> 18:14.160
infrastructure and joint cyberspace

18:14.170 --> 18:17.480
operational capabilities . The budget

18:17.490 --> 18:19.870
request also includes increases in

18:19.870 --> 18:21.926
funding for additional cyber mission

18:21.926 --> 18:24.037
force teams who are engaged in day to

18:24.037 --> 18:26.700
day campaigning to disrupt adversary

18:26.700 --> 18:29.030
actions , demonstrate capability and

18:29.030 --> 18:31.660
resolve shape adversary perceptions and

18:31.660 --> 18:33.771
gain a warfighting advantage . Should

18:33.771 --> 18:37.360
deterrence fail . Strategic

18:37.360 --> 18:39.471
readiness is the department's ability

18:39.471 --> 18:41.471
to build , maintain and balance war

18:41.471 --> 18:43.620
fighting forces capabilities and

18:43.620 --> 18:45.842
competitive advantages to ensure we can

18:45.842 --> 18:47.842
achieve strategic objectives across

18:47.842 --> 18:51.390
threats and time horizons are 20 fy 24

18:51.390 --> 18:54.080
budget request , invest nearly 100 and

18:54.080 --> 18:57.380
$50 billion to ensure our joint forces

18:57.380 --> 18:59.620
ready to respond to any strategic

18:59.620 --> 19:02.160
challenge . The department's strategic

19:02.170 --> 19:04.003
readiness framework ensures that

19:04.003 --> 19:06.059
competing demands of the present are

19:06.059 --> 19:08.170
carefully balanced when preparing for

19:08.170 --> 19:11.660
the future Mr Report . Thanks ,

19:11.670 --> 19:14.650
readiness . By the way that , that we

19:14.720 --> 19:16.942
just talked about , I know it's hard to

19:16.942 --> 19:19.164
write about , especially in , in , in ,

19:19.164 --> 19:21.490
in um in the input side , but it's a

19:21.490 --> 19:23.268
very high inter siding with our

19:23.268 --> 19:25.323
committees and it's something I know

19:25.323 --> 19:27.268
we're gonna talk a lot as we go to

19:27.268 --> 19:29.379
brief them . Uh Something that is , I

19:29.379 --> 19:31.212
think a little more high profile

19:31.212 --> 19:33.212
perhaps in that , in that frame and

19:33.212 --> 19:35.268
campaigning , which is the second of

19:35.268 --> 19:37.379
the ways of our , and if we implement

19:37.379 --> 19:39.770
the NDS , uh Indo Pacific and European

19:39.770 --> 19:41.603
theaters , the so called Pacific

19:41.603 --> 19:43.826
Deterrence initiative and the , and the

19:43.826 --> 19:45.826
longer standing European deterrence

19:45.826 --> 19:47.937
initiative , we continue to use those

19:47.937 --> 19:50.103
categories in these budget . These are

19:50.103 --> 19:52.159
not funds , these are not accounts ,

19:52.159 --> 19:53.992
these are what we sometimes call

19:53.992 --> 19:56.103
tagging exercises uh in particular in

19:56.103 --> 19:58.214
the Pacific Theater . These are the ,

19:58.214 --> 20:00.326
these are the way Congress wants them

20:00.326 --> 20:02.437
to be categorized . They are far from

20:02.437 --> 20:04.437
the sum of all that we do in either

20:04.437 --> 20:06.603
theater by the way , just to remind on

20:06.603 --> 20:08.603
that . But within the categories of

20:08.603 --> 20:10.770
Pacific deterrence , the $9 billion is

20:10.770 --> 20:13.620
a significant increase over over last

20:13.620 --> 20:15.787
year's level , about 40% increase . In

20:15.787 --> 20:18.200
fact , Those of you who follow this may

20:18.200 --> 20:19.978
also know that there's a report

20:19.978 --> 20:22.144
required . It's called the 1254 report

20:22.144 --> 20:24.311
this year . That is a different number

20:24.311 --> 20:26.720
and a different categorization in some

20:26.720 --> 20:30.200
cases on the European side . Uh This is

20:30.200 --> 20:32.256
a little bit harder to do apples and

20:32.256 --> 20:34.422
apples . Now , given everything that's

20:34.422 --> 20:36.533
going on because of Ukraine , what we

20:36.533 --> 20:38.311
have in the European deterrence

20:38.311 --> 20:40.311
initiative had included the Ukraine

20:40.311 --> 20:42.478
Security Assistance initiative of $300

20:42.478 --> 20:44.589
million a year . We've moved that out

20:44.589 --> 20:46.700
of this category just because There's

20:46.700 --> 20:48.811
now such a large number in 23 through

20:48.811 --> 20:50.922
supplementals that it's , it's , it's

20:50.922 --> 20:52.867
really an apple and an orange . So

20:52.867 --> 20:52.570
we've moved that out to kind of keep

20:52.570 --> 20:55.330
Ukraine entirely out of the European

20:55.330 --> 20:57.497
deterrence initiatives discussion . In

20:57.497 --> 20:59.552
addition , there are things that are

20:59.552 --> 21:01.650
informed by Ukraine but broader than

21:01.650 --> 21:03.817
that , that were agreed at last year's

21:03.817 --> 21:05.872
NATO summit to increase our military

21:05.872 --> 21:08.094
contribution to increase the whole NATO

21:08.094 --> 21:09.761
military budget including the

21:09.761 --> 21:11.983
infrastructure budget , the US share of

21:11.983 --> 21:14.206
that is increasing . In both cases , we

21:14.206 --> 21:16.428
have also left that out because that is

21:16.428 --> 21:18.539
new and different . So we could think

21:18.539 --> 21:20.206
about the European deterrence

21:20.206 --> 21:22.372
initiative numbers about 3.6 billion .

21:22.372 --> 21:24.428
But when you add some of these other

21:24.428 --> 21:26.761
things and we're closer to five billion ,

21:26.761 --> 21:28.817
still less than , than the Pacific .

21:28.817 --> 21:30.983
Again , in recognizing our our primary

21:30.983 --> 21:33.039
focus being on the Pacific Theater .

21:33.039 --> 21:35.210
And again , Ukraine is really not in

21:35.210 --> 21:37.432
any way other than that $300 million in

21:37.432 --> 21:39.599
the in this budget . That's the prewar

21:39.599 --> 21:42.320
existing level , moving to the third of

21:42.320 --> 21:44.542
our ways of movement and the strategy ,

21:44.542 --> 21:46.876
the first being integrated , deterrence ,

21:46.876 --> 21:48.931
the second being campaigning , third

21:48.931 --> 21:51.098
building , enduring advantages , which

21:51.098 --> 21:53.264
has two primary legs of it . One is on

21:53.264 --> 21:55.209
the people's side , taking care of

21:55.209 --> 21:57.153
people . The other is on is on the

21:57.153 --> 21:58.931
industrial base and the and the

21:58.931 --> 22:01.153
industry ecosystem that we depend on of

22:01.153 --> 22:03.209
innovation on the people's side . Um

22:03.209 --> 22:05.270
The secretary as you know , put out

22:05.860 --> 22:08.750
memorandum last mid to late September

22:08.760 --> 22:11.310
on this uh and had a couple of

22:11.310 --> 22:13.421
initiatives in there including making

22:13.421 --> 22:15.143
sure that the commissary price

22:15.143 --> 22:18.020
differential remained visible and and

22:18.020 --> 22:20.131
substantial for our service members .

22:20.131 --> 22:23.230
Also to provide additional enhancements

22:23.230 --> 22:25.530
for when people move , given the moving

22:25.530 --> 22:28.130
expenses uh when fuel prices were high

22:28.130 --> 22:30.460
in particular , were an irritant for

22:30.460 --> 22:32.640
folks . So , temporary lodging and

22:32.640 --> 22:34.918
dislocation allowances extending those .

22:35.220 --> 22:37.540
The big , the big number , of course ,

22:37.540 --> 22:39.980
the big number financially and probably

22:39.990 --> 22:42.190
uh in terms of visibility is the pay

22:42.190 --> 22:45.930
raise 5.2% for the

22:46.110 --> 22:48.330
military . That is exactly in keeping

22:48.330 --> 22:50.441
with what the statutory formula would

22:50.441 --> 22:52.710
tell you should be done on the civilian

22:52.710 --> 22:55.320
side . Uh The statutory formula as I

22:55.320 --> 22:57.840
recall is , is half percent lower than

22:57.840 --> 23:00.030
that . But President Biden has in all

23:00.030 --> 23:01.974
three of his budgets opted for pay

23:01.974 --> 23:04.197
raise parity that remains the policy of

23:04.197 --> 23:06.419
the administration again this year . So

23:06.419 --> 23:08.419
we have the same pay raise 5.2% for

23:08.419 --> 23:10.419
both . As I think you probably have

23:10.419 --> 23:12.620
heard from O and B on Thursday , that

23:12.620 --> 23:14.787
would be the largest pay raise in over

23:14.787 --> 23:16.842
two decades . On the military side ,

23:16.842 --> 23:18.898
the largest in four decades . On the

23:18.898 --> 23:21.180
civilian side . Um Moving next to some

23:21.180 --> 23:23.160
of the other areas . Again , this

23:23.160 --> 23:25.216
remains the focus of the secretaries

23:25.216 --> 23:27.438
and our colleagues in the personnel and

23:27.438 --> 23:29.660
readiness front . Uh Family support has

23:29.660 --> 23:31.604
always been important to the Biden

23:31.604 --> 23:33.604
family , both the president and the

23:33.604 --> 23:35.660
first lady , enhanced investments in

23:35.660 --> 23:37.771
education and childcare . We're going

23:37.771 --> 23:39.771
to Universal Pre K now at our dodea

23:39.771 --> 23:42.120
schools both here and overseas , we are

23:42.130 --> 23:44.460
upping our and trying to standardize

23:44.460 --> 23:46.890
our employee discounts to incentivize

23:46.890 --> 23:49.112
people to work in our childcare centers

23:49.112 --> 23:51.334
to give them a discount if they do so .

23:51.334 --> 23:54.160
Also continued focus on suicide

23:54.160 --> 23:56.160
prevention . And as secretary Hicks

23:56.160 --> 23:57.660
mentioned implementing the

23:57.660 --> 23:59.827
recommendations that were already laid

23:59.827 --> 24:01.938
down by the Sexual assault Prevention

24:01.938 --> 24:04.049
Independent Review Commission so that

24:04.049 --> 24:06.271
we got our first substantial tranche of

24:06.271 --> 24:08.990
funding last year uh about three months

24:08.990 --> 24:10.879
ago . Now , I guess from Congress

24:10.879 --> 24:12.934
enacted to allow us to , to move out

24:12.934 --> 24:14.990
continuing all again . That's a good

24:14.990 --> 24:17.046
example of continuing along the same

24:17.046 --> 24:19.046
pathway . We're not deviating or or

24:19.046 --> 24:21.046
altering course on that , but we're

24:21.046 --> 24:22.879
trying to get farther along that

24:22.879 --> 24:24.823
pathway . 2nd , 2nd leg , then the

24:24.823 --> 24:27.046
second branch of enduring advantages is

24:27.046 --> 24:29.379
on more of the industry innovation side .

24:29.440 --> 24:31.610
Here , we have again , the largest R

24:31.610 --> 24:34.180
and D budget ever 4% increase over last

24:34.180 --> 24:36.402
year . As Secretary Ickes noted we also

24:36.402 --> 24:38.402
have the largest procurement budget

24:38.402 --> 24:40.513
ever and that is really about putting

24:40.513 --> 24:42.347
capability in the field . But we

24:42.347 --> 24:44.180
continue to look to the future .

24:44.180 --> 24:44.100
Because as she , as you recall her

24:44.100 --> 24:46.211
saying , we're about deterrence today

24:46.211 --> 24:48.378
tomorrow into the future . So we don't

24:48.378 --> 24:50.211
want to stop with , with today's

24:50.211 --> 24:52.100
investments , healthy science and

24:52.100 --> 24:53.933
technology budget , investing in

24:53.933 --> 24:56.044
artificial intelligence , Jad C two .

24:56.044 --> 24:58.100
As the vice chairman mentioned , not

24:58.100 --> 25:00.267
the biggest number in the budget but a

25:00.267 --> 25:02.433
very central organizing concept of how

25:02.433 --> 25:04.267
we're trying to link information

25:04.267 --> 25:06.378
together . The Deputy Secretary , one

25:06.378 --> 25:08.322
of her key initiatives , the rapid

25:08.322 --> 25:10.489
defense experimentation reserve trying

25:10.489 --> 25:12.600
to be more agile more joint on how we

25:12.600 --> 25:14.822
do experiments and then feed those into

25:14.822 --> 25:16.878
a feedback loop back into what we're

25:16.878 --> 25:18.933
doing and finally a relatively small

25:18.933 --> 25:21.156
number . But but an initiative that the

25:21.156 --> 25:23.378
secretary cares a lot about also Office

25:23.378 --> 25:25.489
of Strategic Capital . This is trying

25:25.489 --> 25:27.544
to connect us better with , with the

25:27.544 --> 25:29.489
venture capital world to get their

25:29.489 --> 25:31.600
ideas and their capabilities into our

25:31.600 --> 25:31.540
system . It's not connecting us to the

25:31.540 --> 25:33.318
Silicon Valley Bank , but it is

25:33.318 --> 25:35.920
connecting us to that to that world um

25:36.600 --> 25:38.878
on the industrial base in supply chain .

25:38.878 --> 25:40.989
This is a good example of what I said

25:40.989 --> 25:43.156
earlier that everything we cared about

25:43.156 --> 25:45.322
last year and funded last year , we're

25:45.322 --> 25:47.489
continuing this year . The five things

25:47.489 --> 25:49.489
you see on the top of the slide are

25:49.489 --> 25:51.656
things that we cared about . It funded

25:51.656 --> 25:53.767
last year . Microelectronic including

25:53.767 --> 25:55.878
but not limited to the Chips Act . In

25:55.878 --> 25:58.156
fact , largely on top of the chips Act ,

25:58.156 --> 26:00.378
what's listed on this slide casting and

26:00.378 --> 26:02.656
forging batteries energetic that power ,

26:02.656 --> 26:04.878
munitions , stockpiling , strategic and

26:04.878 --> 26:07.000
critical materials . In addition , we

26:07.000 --> 26:08.944
continue to focus on the submarine

26:08.944 --> 26:11.056
industrial base . Strong support from

26:11.056 --> 26:13.167
Congress on that . That was true last

26:13.167 --> 26:15.380
year . That's true . This year uh that

26:15.390 --> 26:18.900
investment includes uh some , some what

26:18.900 --> 26:20.956
I would call precursor for lack of a

26:20.956 --> 26:22.844
better word support for the Aucas

26:22.844 --> 26:25.170
agreement . But in general , Aucas is

26:25.170 --> 26:27.337
in front of us . It's not particularly

26:27.337 --> 26:29.392
a big theme of this budget . Uh That

26:29.392 --> 26:31.503
effort really is getting started with

26:31.503 --> 26:33.559
the president's announcement today ,

26:33.559 --> 26:35.726
but there is the work we've been doing

26:35.726 --> 26:37.392
on summary industrial base is

26:37.392 --> 26:39.510
definitely uh supportive of that

26:39.510 --> 26:43.120
direction as well . Also um multiyear

26:43.120 --> 26:45.009
procurement as we've talked about

26:45.009 --> 26:47.009
trying to increase capacity , we'll

26:47.009 --> 26:48.953
talk more about that in a second .

26:48.953 --> 26:51.064
Actually , we'll talk more about that

26:51.064 --> 26:53.120
right now because I'm gonna pivot to

26:53.120 --> 26:52.840
our munitions slide again , this is

26:52.840 --> 26:55.430
what we consider the biggest new thing

26:55.430 --> 26:57.900
in our budget or new emphasis , very

26:57.900 --> 26:59.956
much informed by what's happening in

26:59.956 --> 27:02.067
Ukraine . But if you notice what's on

27:02.067 --> 27:04.178
these slides , these are not the kind

27:04.178 --> 27:06.400
of missiles that are key to the Ukraine

27:06.400 --> 27:08.511
fight . These are key to Indo Pacific

27:08.511 --> 27:10.567
deterrence . What we're trying to do

27:10.567 --> 27:12.789
here , what the deputy has been pushing

27:12.789 --> 27:15.090
us to do is to think about lessons that

27:15.090 --> 27:17.257
we're learning today and apply them to

27:17.257 --> 27:19.090
the future , apply them to other

27:19.090 --> 27:21.312
scenarios and think about where would ,

27:21.312 --> 27:21.020
what would I have liked to have done

27:21.020 --> 27:23.187
four years ago if I had a crystal ball

27:23.187 --> 27:25.298
about Ukraine . Let's try and do some

27:25.298 --> 27:27.409
of those things now about things that

27:27.409 --> 27:29.520
could be coming . So again , we are ,

27:29.520 --> 27:31.742
we are moving into the multi year space

27:31.742 --> 27:33.964
on , on munitions in a way that we have

27:33.964 --> 27:36.340
not done before . Uh , in the past I

27:36.340 --> 27:38.284
think we considered , it was often

27:38.284 --> 27:40.340
considered that you buy munitions in

27:40.340 --> 27:42.451
much higher quantities generally than

27:42.451 --> 27:44.490
airplanes and ships . So that multi

27:44.490 --> 27:46.434
years were , weren't necessary and

27:46.434 --> 27:48.601
weren't done . But we have still found

27:48.601 --> 27:50.601
the industrial base is not where it

27:50.601 --> 27:52.712
needs to be on this front . So we are

27:52.712 --> 27:54.970
trying to bring forward a concept that

27:54.980 --> 27:57.147
that my team has been working on for a

27:57.147 --> 27:59.036
couple of years called large loud

27:59.036 --> 28:01.202
procurement . That is not just a multi

28:01.202 --> 28:03.369
year for a in a multi year for being a

28:03.369 --> 28:03.010
multi year for C but thinking about

28:03.010 --> 28:05.270
them as a package , how they work

28:05.270 --> 28:07.750
together trying to increase capacity

28:07.750 --> 28:09.820
and efficiency and do the upfront

28:09.820 --> 28:12.220
ordering of common components that are ,

28:12.220 --> 28:14.442
that are often part of multi years . Uh

28:14.442 --> 28:17.310
The deputy put it really well . This is

28:17.310 --> 28:20.430
sort of a step process where you have a

28:20.430 --> 28:22.652
max capacity today . You want to get to

28:22.652 --> 28:24.874
that mass capacity today and we do that

28:24.874 --> 28:27.041
on a number of these missiles . But if

28:27.041 --> 28:29.208
that mass capacity is not enough , you

28:29.208 --> 28:31.041
need to do things to expand that

28:31.041 --> 28:33.208
capacity so that tomorrow you can keep

28:33.208 --> 28:35.263
climbing up that ladder . Uh That is

28:35.263 --> 28:37.319
something that my colleague , Bill ,

28:37.319 --> 28:39.374
the plant has been working on on the

28:39.374 --> 28:41.374
Ukraine side , on the ground side .

28:41.374 --> 28:43.541
This this is something I build a plant

28:43.541 --> 28:45.708
and his team have also been working on

28:45.708 --> 28:47.819
is to take that next step and broaden

28:47.819 --> 28:49.763
that out . So this is probably the

28:49.763 --> 28:52.200
biggest uh uh news or in Ukraine

28:52.200 --> 28:55.230
informed uh part of our budget , even

28:55.230 --> 28:57.920
if it's not Ukraine specific um

28:57.930 --> 29:00.097
pivoting just a little bit more to the

29:00.097 --> 29:01.986
enduring event , decide uh to the

29:01.986 --> 29:03.986
question about how we are trying to

29:03.986 --> 29:06.097
make this place run as efficiently as

29:06.097 --> 29:08.152
possible . Many different aspects of

29:08.152 --> 29:10.350
that uh divestment , which is again an

29:10.350 --> 29:12.450
example of something that we cared

29:12.450 --> 29:14.617
about . Last year we had in our budget

29:14.617 --> 29:16.839
last year , we're gonna ask Congress to

29:16.839 --> 29:19.061
support us on some of those same things

29:19.061 --> 29:21.172
we've been making some progress , not

29:21.172 --> 29:23.339
as fast as we would like , but some of

29:23.339 --> 29:23.070
those things will be back in there .

29:23.070 --> 29:26.380
Some of the older L C S s uh moving ,

29:26.380 --> 29:28.436
moving out away from the A 10 things

29:28.436 --> 29:30.324
like that . In addition , we have

29:30.324 --> 29:32.324
process reforms , we have , we have

29:32.324 --> 29:34.324
other transformational efforts . Uh

29:34.324 --> 29:36.491
You've heard the deputy talk about the

29:36.491 --> 29:38.547
C D A O A better use of AI to get to

29:38.547 --> 29:40.650
get data and analytics more widely

29:40.650 --> 29:42.872
diffused throughout the department . Uh

29:42.872 --> 29:44.983
Something else I just want to mention

29:44.983 --> 29:47.150
here that is probably of high interest

29:47.150 --> 29:49.261
inside our department , maybe more so

29:49.261 --> 29:51.483
even than outside our department is the

29:51.483 --> 29:53.706
last bullet on here investing in buying

29:53.706 --> 29:55.761
down technical debt for those of you

29:55.761 --> 29:57.928
who remember the thread that was going

29:57.928 --> 30:00.039
around on Twitter , fix our computers

30:00.039 --> 30:02.150
that really resonated . I don't think

30:02.150 --> 30:04.150
we had more support at any , at any

30:04.150 --> 30:03.810
particular meeting that than on

30:03.810 --> 30:07.100
investing in that . Uh so that and

30:07.110 --> 30:09.670
investing in cloud enhancing our cloud

30:09.670 --> 30:11.892
computing efforts , really glad that we

30:11.892 --> 30:14.059
are beyond all of the years of protest

30:14.059 --> 30:16.281
on that uh to , to move forward on both

30:16.281 --> 30:18.503
those fronts . Um Those are examples of

30:18.503 --> 30:20.559
some of the ways we're trying to get

30:20.559 --> 30:23.290
better inside our house here . Um Take

30:23.290 --> 30:25.346
a moment to talk about climate and ,

30:25.346 --> 30:27.512
and , and , and in that area , again ,

30:27.512 --> 30:29.734
we have about $5 billion . Again , this

30:29.734 --> 30:31.901
is something that we had in the budget

30:31.901 --> 30:34.123
last year , continue to have focused on

30:34.123 --> 30:36.234
this year . Installations are the big

30:36.234 --> 30:38.346
ones also uh how we can be more agile

30:38.346 --> 30:40.990
cut our logistic footprint and finally ,

30:41.000 --> 30:42.889
very important in all these areas

30:42.889 --> 30:45.340
moving in tandem with where industry is

30:45.340 --> 30:47.396
going . So we are trying to buy what

30:47.396 --> 30:49.562
they're , what they're by what they're

30:49.562 --> 30:51.451
making now where they're gonna be

30:51.451 --> 30:53.451
making next . And we're not sort of

30:53.451 --> 30:55.340
planting our flag over here while

30:55.340 --> 30:57.451
everybody's moving on . So there's an

30:57.451 --> 30:59.673
industrial part of logistics part in an

30:59.673 --> 31:01.784
actual , you know , helping ourselves

31:01.784 --> 31:01.780
withstand extreme weather part ,

31:01.780 --> 31:03.891
there's , there's multiple aspects of

31:03.891 --> 31:06.390
why this makes sense . Um Moving sort

31:06.390 --> 31:08.557
of towards the end here we have on the

31:08.557 --> 31:11.190
facility side a very large by our

31:11.190 --> 31:13.079
standards , military construction

31:13.079 --> 31:15.190
increase military construction budget

31:15.190 --> 31:17.500
uh both for , for readiness for

31:17.500 --> 31:19.222
European deterrence , specific

31:19.222 --> 31:21.111
deterrence and dispersal . In the

31:21.111 --> 31:22.780
Pacific for the Navy Shipyard

31:22.780 --> 31:24.947
optimization Program . You've probably

31:24.947 --> 31:27.113
heard as the second youth D O D use of

31:27.113 --> 31:29.280
the acronym Psyop for those of you who

31:29.280 --> 31:31.280
remember the original one , uh some

31:31.280 --> 31:33.613
very large projects there in particular ,

31:33.613 --> 31:35.447
the the Hawaii project at over a

31:35.447 --> 31:37.669
billion dollars continuing to invest in

31:37.669 --> 31:40.090
housing quality of life . And on the in

31:40.090 --> 31:42.370
the operating budget , $19 billion for

31:42.370 --> 31:44.940
facilities srm repairing facilities

31:44.940 --> 31:47.051
that we already have in place without

31:47.051 --> 31:49.051
building new ones . So we have both

31:49.051 --> 31:51.051
those fronts in this budget . So in

31:51.051 --> 31:53.051
summary , I just want to say we are

31:53.051 --> 31:55.162
continuing not withstanding what what

31:55.162 --> 31:57.329
the importance of Ukraine , the amount

31:57.329 --> 31:59.551
of time that we're spending on it . The

31:59.551 --> 32:01.607
strategy remains aligned to the more

32:01.607 --> 32:03.607
comprehensive challenge and this is

32:03.607 --> 32:05.607
true both of duty and and the inter

32:05.607 --> 32:07.718
agency presented by , by the People's

32:07.718 --> 32:09.940
Republic of China across the diplomatic

32:09.940 --> 32:12.900
economic and military space . And we're

32:12.900 --> 32:14.678
going to continue to follow the

32:14.678 --> 32:16.733
Secretary strategy and trying to get

32:16.733 --> 32:18.956
ourselves in the best possible position

32:18.956 --> 32:21.122
there . And with that , we're happy to

32:21.122 --> 32:21.000
take some questions . Okay . Thank you ,

32:21.000 --> 32:23.950
sir . I will start with a cup with the

32:23.960 --> 32:26.330
associated press . Thank you for doing

32:26.330 --> 32:30.030
this on the slide that had

32:30.040 --> 32:33.880
the space capabilities . You mentioned

32:33.890 --> 32:36.050
the need to develop more anti jamming

32:36.050 --> 32:38.270
capability and then this is , I think

32:38.270 --> 32:40.400
the most breakout we've seen in the

32:40.400 --> 32:43.490
Hyper Sonics are these two being driven

32:43.490 --> 32:45.850
specifically by what you saw from

32:45.850 --> 32:48.560
Russia in the last year in Ukraine .

32:48.570 --> 32:51.450
And then secondly , um when we saw the

32:51.450 --> 32:53.394
growth chart , the growth spinning

32:53.394 --> 32:55.006
chart , it looks like you're

32:55.006 --> 32:57.117
anticipating 919 billion , you know ,

32:57.117 --> 32:59.117
by fy 28 a budget almost a trillion

32:59.117 --> 33:02.360
dollars . But we will still see that

33:02.360 --> 33:04.980
it's not enough to do all the ships to

33:04.980 --> 33:07.570
do all of the aircraft . Um Same

33:07.570 --> 33:09.792
question I kind of asked in the earlier

33:09.792 --> 33:12.570
session , how come that's not enough ,

33:12.580 --> 33:14.691
what , what more needs to be done for

33:14.691 --> 33:16.691
the defense department budget to be

33:16.691 --> 33:18.747
where it needs to be ? Okay . Let me

33:18.747 --> 33:20.913
start pivot to Admiral Joiner and then

33:20.913 --> 33:23.136
come back . Let me just , I'll just say

33:23.136 --> 33:25.191
on the space and anti jam . My quick

33:25.191 --> 33:24.790
answer would be no , it's not

33:24.800 --> 33:26.967
particularly informed by Ukraine , but

33:26.967 --> 33:29.189
if you wanna go a little deeper on that

33:29.189 --> 33:31.356
and then I'll come back to that part .

33:31.356 --> 33:33.356
So space is a background of the U S

33:33.356 --> 33:35.411
military as , as we all know , uh we

33:35.411 --> 33:37.356
are , we have been working towards

33:37.356 --> 33:39.800
enhancing our anti jam our SAT com

33:39.800 --> 33:43.190
capabilities , building resilient and

33:43.200 --> 33:46.550
robust space architecture . It predates

33:46.550 --> 33:48.420
well before what we're seeing in

33:48.420 --> 33:51.150
regards to Russia and it is a backbone

33:51.150 --> 33:54.480
to our operations as we uh as we look

33:54.480 --> 33:56.820
for a longer range type of weapons and

33:56.820 --> 34:00.110
to be able to uh see around the globe

34:00.120 --> 34:02.520
and be able to monitor from space . We

34:02.520 --> 34:04.576
know that our adversaries can target

34:04.576 --> 34:06.576
some of those , those assets . So ,

34:06.576 --> 34:09.160
resiliency has been a huge effort by

34:09.170 --> 34:11.170
the joint force . At this point . I

34:11.170 --> 34:13.337
think some of the innovations that the

34:13.337 --> 34:15.503
department is taking right now are not

34:15.503 --> 34:17.559
necessarily driven by anything other

34:17.559 --> 34:19.614
than an urgency to make sure that we

34:19.614 --> 34:21.781
have the right architecture airborne .

34:21.781 --> 34:23.948
Um Just back on the sufficiency of the

34:23.948 --> 34:26.003
top line . I would say the secretary

34:26.003 --> 34:28.337
believes this is a good , a good number .

34:28.337 --> 34:27.700
He's happy with this number and it

34:27.710 --> 34:29.766
doesn't buy everything that we would

34:29.766 --> 34:31.821
have liked to do . We had some other

34:31.821 --> 34:33.988
good ideas as a , as a collective duty

34:33.988 --> 34:36.099
group that we , that we could not get

34:36.099 --> 34:37.988
in at this level , but we got our

34:37.988 --> 34:40.099
highest priorities in and we're happy

34:40.099 --> 34:42.321
with that . Um There are things that in

34:42.321 --> 34:44.488
a perfect world we'd like to be buying

34:44.488 --> 34:46.654
that are not produce a ble . Um I know

34:46.654 --> 34:46.580
there's been some interest like , for

34:46.580 --> 34:48.802
example , last year in buying three D D

34:48.802 --> 34:50.900
D D D G s a year , we would love to

34:50.900 --> 34:53.011
live in a world where the yards could

34:53.011 --> 34:55.233
make three a year or three submarines a

34:55.233 --> 34:57.511
year , but we don't live in that world .

34:57.511 --> 34:59.733
So there are things that we could do uh

34:59.733 --> 34:59.370
that are not feasible and not good ,

34:59.380 --> 35:02.580
not good ways to invest money . Um in

35:02.580 --> 35:04.524
terms of the top line in general ,

35:04.524 --> 35:06.580
again , the , the , the existence of

35:06.580 --> 35:08.691
unfunded priority list does not prove

35:08.691 --> 35:08.410
that our budget is insufficient . I

35:08.410 --> 35:10.410
don't think there are always things

35:10.410 --> 35:12.466
that we could be doing more of . But

35:12.466 --> 35:14.577
again , if you , if you want to think

35:14.577 --> 35:16.521
of the budget representing our top

35:16.521 --> 35:18.632
10,000 priorities , the unfunded list

35:18.632 --> 35:20.632
start at 10,001 , that doesn't mean

35:20.632 --> 35:22.577
that they're not good things to do

35:22.577 --> 35:24.577
whether they're amphibious ships or

35:24.577 --> 35:26.688
anything else . But we are happy with

35:26.688 --> 35:28.854
the way we prioritized what is in this

35:28.854 --> 35:28.690
budget . And just on , on the point

35:28.690 --> 35:31.023
that you made with the deputy secretary ,

35:31.030 --> 35:33.141
Um just do the math , the budget will

35:33.141 --> 35:35.308
hit a trillion dollars probably before

35:35.308 --> 35:37.530
that . Even , even if it only grew 3% a

35:37.530 --> 35:39.863
year when the numbers are what they are ,

35:39.863 --> 35:41.808
it's inevitable . And I think that

35:41.808 --> 35:41.220
might , maybe that's gonna be a

35:41.220 --> 35:44.070
psychological um big watershed moment

35:44.070 --> 35:46.400
for , for many of us or some of us ,

35:46.410 --> 35:49.600
but it is inevitable and um it just

35:49.600 --> 35:51.870
reflects the growth of the economy

35:51.870 --> 35:54.037
among other things when I was , when I

35:54.037 --> 35:56.370
was born . Uh we were , we , the United

35:56.370 --> 35:58.660
States were at 9% of GDP on defense .

35:58.870 --> 36:01.203
Ronald Reagan was considered high at 6% .

36:01.203 --> 36:03.148
We're now at three . So it's a big

36:03.148 --> 36:06.300
number . But in other context , you

36:06.300 --> 36:08.633
know , you could look at it another way .

36:10.040 --> 36:13.430
Okay . We'll go with Megan . Hi Megan

36:13.430 --> 36:15.652
Myers from military times . Um I wanted

36:15.652 --> 36:17.763
to ask about the end strength numbers

36:17.763 --> 36:19.874
you mentioned um based on last year's

36:19.874 --> 36:21.763
protection or this current year's

36:21.763 --> 36:23.763
projection next year's request that

36:23.763 --> 36:26.330
shows an increase . Um but based on

36:26.330 --> 36:28.440
last year's authorized , um and the

36:28.440 --> 36:30.960
request for 2024 it's actually a little

36:30.960 --> 36:33.293
bit of a dip . It's almost an equal dip .

36:33.293 --> 36:36.900
Is this reflective of a march toward a

36:36.900 --> 36:39.300
smaller overall and strength or is it

36:39.300 --> 36:41.300
more about trying to find the sweet

36:41.300 --> 36:43.540
spot between what you guys want , what

36:43.540 --> 36:45.762
the services want and what they're able

36:45.762 --> 36:47.873
to accomplish ? I would say it's more

36:47.873 --> 36:49.984
the latter , in particular , the army

36:49.984 --> 36:52.151
believes that they can come back up in

36:52.151 --> 36:54.880
a couple of years , say from 4 52 which

36:54.880 --> 36:57.158
is what's on the paper in front of you .

36:57.158 --> 36:59.380
If you looked at a couple of years , it

36:59.380 --> 37:01.213
would go for 56 for 60 . So they

37:01.213 --> 37:03.213
believe they can come back up . But

37:03.213 --> 37:05.436
they believe that based on what they're

37:05.436 --> 37:07.436
seeing now that , that , that , you

37:07.436 --> 37:09.380
know , that that end goal is not

37:09.380 --> 37:12.520
achievable in the next year . Um Again ,

37:14.430 --> 37:17.510
recruiting , recruiting at any time in

37:17.510 --> 37:19.820
my lifetime would have been tough at

37:19.820 --> 37:21.931
this kind of unemployment level where

37:21.931 --> 37:24.264
people have so many other opportunities ,

37:24.264 --> 37:26.320
especially the people that we want ,

37:26.320 --> 37:28.209
right ? We want talented people ,

37:28.209 --> 37:30.376
people , people with drive people with

37:30.376 --> 37:30.350
high school degrees , etcetera , people

37:30.350 --> 37:33.530
with technical skills . So , um that ,

37:33.530 --> 37:35.752
that's gonna be a challenge and that is

37:35.752 --> 37:38.270
sort of reflected here . Um Again , the

37:38.270 --> 37:40.770
services recognize that uh and it is

37:40.770 --> 37:43.110
something that we're , of course ,

37:43.110 --> 37:45.221
there are initiatives here to address

37:45.221 --> 37:47.388
the recruiting side . The retention is

37:47.388 --> 37:49.443
already in a pretty good place . But

37:49.443 --> 37:49.150
yes , I think it is more informed by

37:49.150 --> 37:51.550
what , what seems realistic . There is

37:51.550 --> 37:55.160
not a good reason to put um , something

37:55.160 --> 37:57.327
that you could hope for , but it's not

37:57.327 --> 37:59.438
really achievable in here and consume

37:59.438 --> 38:01.549
resources on an end strength that you

38:01.549 --> 38:03.716
can't hit any more than there would be

38:03.716 --> 38:05.660
to put a third D D G . And if , if

38:05.660 --> 38:07.827
people can't build them at that rate ,

38:07.827 --> 38:09.827
I mean , the army's request here is

38:09.827 --> 38:12.049
pretty flat with what they were able to

38:12.049 --> 38:11.610
actually achieve last year . It's

38:11.610 --> 38:13.832
actually the other services that showed

38:13.832 --> 38:15.999
a little bit of a projection shortfall

38:15.999 --> 38:18.110
from what they were allowed to have .

38:18.110 --> 38:20.277
Um But that they , but maybe that they

38:20.277 --> 38:20.030
would like to be able to get back a

38:20.030 --> 38:22.252
little bit to where they had originally

38:22.252 --> 38:24.308
wanted to be . Is it , would you say

38:24.308 --> 38:26.474
it's only the army who's having that ,

38:26.474 --> 38:28.530
that struggle or it looks like , you

38:28.530 --> 38:27.840
know , for at least part of the year

38:27.840 --> 38:31.530
the navy was well over 10,000 ,

38:31.970 --> 38:34.026
I would not say the army is the only

38:34.026 --> 38:35.748
one . They tend to be the most

38:35.748 --> 38:37.914
sensitive to this . But , but as our ,

38:37.914 --> 38:40.081
as our colleague come up and follow us

38:40.081 --> 38:39.960
today , I'm sure each of them can talk

38:39.960 --> 38:42.071
a little more specificity than I'd be

38:42.071 --> 38:44.120
able to about their own particular

38:44.120 --> 38:46.287
picture . But no everybody has some of

38:46.287 --> 38:48.342
the same concerns and , and has gone

38:48.342 --> 38:50.342
into their delayed entry pool . For

38:50.342 --> 38:52.509
example , I think that's correct . All

38:52.509 --> 38:54.676
of them probably have . I think so . I

38:54.676 --> 38:56.787
do know that there's some significant

38:56.787 --> 38:58.731
work by the services in the coming

38:58.731 --> 39:01.150
years for their recruiting , how

39:01.150 --> 39:02.872
they're going to get out those

39:02.872 --> 39:04.928
recruiting goals . So I know they're

39:04.928 --> 39:06.706
gonna be able to expand on , on

39:06.706 --> 39:06.660
significant programs that they're

39:06.660 --> 39:08.716
putting in place in order to address

39:08.716 --> 39:10.938
recruiting , recruiting challenges that

39:10.938 --> 39:13.104
they have , especially in light of the

39:13.104 --> 39:15.216
aftermath of COVID and not being able

39:15.216 --> 39:17.520
to get into some key places . Okay ,

39:17.520 --> 39:19.631
thank you . We'll go to Tony , please

39:19.631 --> 39:21.742
inside defense back to the top line .

39:21.742 --> 39:23.964
You said that the overall growth , real

39:23.964 --> 39:26.370
growth in this budget is 0.8% that

39:26.370 --> 39:28.592
still represents a loss of buying power

39:28.592 --> 39:30.648
at the department in in the billions

39:30.648 --> 39:32.814
even though nominally that the numbers

39:32.814 --> 39:34.814
are very big . The Deputy Secretary

39:34.814 --> 39:36.870
said there's no such thing as a as a

39:36.870 --> 39:36.840
risk free budget . So first of all ,

39:36.840 --> 39:39.380
why is that level of less than 1%

39:39.380 --> 39:42.040
growth , appropriate risk to take ,

39:42.040 --> 39:43.984
given the lost buying power you're

39:43.984 --> 39:46.151
taking on . And also it seems like the

39:46.151 --> 39:48.210
message to Congress is give us an on

39:48.210 --> 39:50.640
time budget rather than fight it for

39:50.640 --> 39:52.584
three months and then give us more

39:52.584 --> 39:54.640
money with a late budget . Could you

39:54.640 --> 39:56.584
unpack ? Why that is significant ?

39:56.584 --> 39:58.807
Thank you . Okay . Let me , let me take

39:58.807 --> 40:01.540
the second part first . Yeah , as the

40:01.540 --> 40:03.730
deputy said , you can't buy back time

40:03.730 --> 40:05.841
with money . This is something I've ,

40:05.841 --> 40:08.920
I've observed has been , um , A

40:08.920 --> 40:12.550
frequent phenomenon over , over my 38

40:12.550 --> 40:14.661
or 39th year in this business . Now ,

40:14.661 --> 40:17.470
is that , um , the thing that Congress

40:17.470 --> 40:19.414
can do for us and does do for us ,

40:19.414 --> 40:22.420
right ? Is , is provide resources but ,

40:22.430 --> 40:24.430
but writing a check doesn't address

40:24.430 --> 40:26.486
every problem . And so the time that

40:26.486 --> 40:28.708
you lose , you cannot , you cannot make

40:28.708 --> 40:30.708
up with more money . Um It's just ,

40:30.708 --> 40:32.819
it's just a fact and there are things

40:32.819 --> 40:34.986
that you can address with more money ,

40:34.986 --> 40:34.520
but there are also things that you

40:34.520 --> 40:38.250
can't . Um Why is the top line

40:38.250 --> 40:41.330
sufficient ? Again , this is uh as you

40:41.330 --> 40:43.330
say , it is not a phenomenal growth

40:43.330 --> 40:45.497
rate over last year . But again , last

40:45.497 --> 40:47.386
year , Congress added $43 billion

40:47.386 --> 40:55.330
773

40:55.330 --> 40:57.970
billion we put in is so we think the

40:57.970 --> 41:01.750
content of this is quite strong going

41:01.750 --> 41:04.028
over the content that we had last year ,

41:04.028 --> 41:06.139
about a 9% increase . Again , it is ,

41:06.139 --> 41:08.306
it is a smaller increase over what the

41:08.306 --> 41:10.417
43 billion Congress added , but it is

41:10.417 --> 41:12.361
still an increase , it is not lost

41:12.361 --> 41:14.139
buying power . If the inflation

41:14.139 --> 41:16.361
assumptions are correct , which who can

41:16.361 --> 41:18.528
tell at this point we're talking about

41:18.528 --> 41:20.417
a period that starts six or seven

41:20.417 --> 41:22.417
months from now and goes on another

41:22.417 --> 41:24.583
year beyond that . And just last point

41:24.583 --> 41:26.806
I would make is that , As I said , this

41:26.806 --> 41:28.972
is $100 billion dollars more than what

41:28.972 --> 41:30.972
we were projecting to have just two

41:30.972 --> 41:33.194
years ago at this time . So , depending

41:33.194 --> 41:35.417
on what your starting point is , it's a

41:35.417 --> 41:37.583
small increase or a fairly substantial

41:37.583 --> 41:40.930
one . We'll go to Sam . Hi , Sam

41:40.930 --> 41:43.350
Lagrone from us and I news um just a

41:43.350 --> 41:46.130
couple of points of clarification from

41:46.130 --> 41:48.240
Admiral Grady earlier . Uh He talked

41:48.240 --> 41:50.900
about a new amphibious study looking at

41:50.900 --> 41:52.733
the , the amphibious forces . We

41:52.733 --> 41:54.900
understand that's a capabilities based

41:54.900 --> 41:57.122
assessment is that for seeing some kind

41:57.122 --> 41:59.178
of , you know , Jay Rock acquisition

41:59.178 --> 42:01.178
process , how much was OSD and Cape

42:01.178 --> 42:03.511
involved in that moving forward on this ?

42:03.511 --> 42:05.622
And then the second question is , how

42:05.622 --> 42:07.789
do you all know um ship builders can't

42:07.789 --> 42:11.060
build three D D GS a year ? Uh Let me

42:11.060 --> 42:13.060
answer the second one international

42:13.060 --> 42:15.282
join her for the first one . She's much

42:15.282 --> 42:17.338
more cognizant on the , on the first

42:17.338 --> 42:19.393
point about about the studies on the

42:19.393 --> 42:19.340
second one . I'm just going by the

42:19.340 --> 42:21.340
evidence of what has happened . The

42:21.340 --> 42:23.562
last X number of years is the amount of

42:23.562 --> 42:25.784
money that goes in equals to a year and

42:25.784 --> 42:27.840
the amount of ships that come out is

42:27.840 --> 42:29.951
less than two . It's about 1.5 . It's

42:29.951 --> 42:32.007
different for the submarines and the

42:32.007 --> 42:34.062
DDGS . But in neither case , does it

42:34.062 --> 42:36.173
equal to . So I'm just going on track

42:36.173 --> 42:38.229
record here as far as the amphibious

42:38.229 --> 42:40.850
studies with the new NDS that came out

42:40.850 --> 42:43.490
in 22 . The thought is , is that what

42:43.490 --> 42:45.490
we have right now is sufficient for

42:45.490 --> 42:47.710
what we need in order for near term

42:47.710 --> 42:49.821
requirements for amphibians . But the

42:49.821 --> 42:51.821
chance to redirect and take another

42:51.821 --> 42:53.877
look was something that was valued .

42:53.877 --> 42:55.932
And so the Department of the Navy is

42:55.932 --> 42:58.090
moving forward with that study and it

42:58.090 --> 43:00.034
will be their study that they will

43:00.034 --> 43:02.257
bring forward is to my knowledge is how

43:02.257 --> 43:03.660
that will will occur .

43:07.360 --> 43:09.680
Many of the studies are congressional

43:09.680 --> 43:12.890
directed . I , I may have not have this

43:12.890 --> 43:15.001
one been correctly in my mind whether

43:15.001 --> 43:17.168
this is a congressional mandated study

43:17.168 --> 43:19.400
or a navy study . All right , we'll

43:19.400 --> 43:21.610
move on and go over to Mike Stone ,

43:21.610 --> 43:23.554
please . Mike Stone from Reuters .

43:23.554 --> 43:25.610
Thanks . Can you , uh , put a dollar

43:25.610 --> 43:28.180
figure on exactly how much money is in

43:28.190 --> 43:32.040
this budget ? And for Ukraine , have

43:32.040 --> 43:33.984
you , how long does it take to put

43:33.984 --> 43:36.151
together a supplemental ? And have you

43:36.151 --> 43:38.820
started ? Um , again , I will follow my

43:38.820 --> 43:40.598
pattern of answering the second

43:40.598 --> 43:43.030
question first . Uh , we have not

43:43.030 --> 43:44.863
started putting together Ukraine

43:44.863 --> 43:46.974
supplemental for 20 for , nor have we

43:46.974 --> 43:49.260
started putting together any Additional

43:49.260 --> 43:53.080
supplementals for 23 . The spring

43:53.080 --> 43:55.440
for lack of offensives are really not

43:55.440 --> 43:57.440
far enough along for us to draw any

43:57.440 --> 44:00.750
conclusions on that . Um , last year

44:00.750 --> 44:02.750
you might remember that we did four

44:02.750 --> 44:04.917
supplementals in less than 12 months .

44:04.917 --> 44:06.639
So we can do them quickly if ,

44:06.639 --> 44:08.583
especially if we're doing them for

44:08.583 --> 44:10.639
relatively short windows where we're

44:10.639 --> 44:12.639
not trying to prognosticate a whole

44:12.639 --> 44:14.861
year in advance last year . Obviously ,

44:14.861 --> 44:16.861
on average , if we had four in less

44:16.861 --> 44:18.917
than a year , none of them were very

44:18.917 --> 44:21.083
long windows . Although the most , the

44:21.083 --> 44:23.139
last one was , was the longest , I'm

44:23.139 --> 44:25.028
sorry , count . I'm talking about

44:25.028 --> 44:27.139
calendar year we did for covering two

44:27.139 --> 44:29.250
fiscal years . Um Remind me the first

44:29.250 --> 44:32.130
question was August . Um I would say

44:32.140 --> 44:34.600
probably only about 50 million is sort

44:34.600 --> 44:37.920
of directly August . August

44:37.930 --> 44:41.640
focused , but the whole several $100

44:41.640 --> 44:44.030
million I think it's over 3 50 in

44:44.030 --> 44:46.197
industrial based funding , if not , if

44:46.197 --> 44:48.419
not larger submarine , industrial based

44:48.419 --> 44:50.363
investments , both in on on the uh

44:50.363 --> 44:52.419
capacity side and the workforce side

44:52.419 --> 44:55.960
are all an important foundation for

44:55.960 --> 44:58.127
that . Again , August is really mostly

44:58.127 --> 45:00.182
about something that is going in the

45:00.182 --> 45:02.460
future that this budget was not really ,

45:02.460 --> 45:04.627
you know , we knew it was coming , but

45:04.627 --> 45:06.793
it was not really an August program of

45:06.793 --> 45:08.950
any great definition in this budget .

45:10.020 --> 45:11.853
Okay . We have time for one last

45:11.853 --> 45:15.000
question , Tony Paseo , a question on

45:15.000 --> 45:16.860
the overall the budget , the

45:16.860 --> 45:18.860
superlatives that reporters and the

45:18.860 --> 45:21.027
public should use on this thing . It's

45:21.027 --> 45:23.249
been described in various ways like the

45:23.249 --> 45:25.304
New York Yankees , the largest , the

45:25.304 --> 45:27.471
best , the biggest is this the largest

45:27.471 --> 45:29.304
defense budget in recent years ,

45:29.304 --> 45:31.304
exclusive of the late two thousands

45:31.304 --> 45:33.910
Iraq , Afghanistan war efforts and

45:33.910 --> 45:35.966
admiral , I hate to ask this , but a

45:35.966 --> 45:38.021
month ago , the world was transfixed

45:38.021 --> 45:40.077
with the balloon . Is there anything

45:40.077 --> 45:42.120
that was added or shifted into all

45:42.120 --> 45:44.470
domain security awareness because of

45:44.470 --> 45:46.637
the balloon ? Shoot down the detection

45:46.637 --> 45:49.730
and shoot down ? Um Yeah , let me start .

45:49.730 --> 45:51.897
First of all , if you will describe me

45:51.897 --> 45:54.119
like compare me to Aaron Judge , then I

45:54.119 --> 45:56.341
will be happy to say this . This is the

45:56.341 --> 45:58.670
largest budget ever Reggie Jackson .

45:58.670 --> 46:00.559
You mean in terms of age , you're

46:00.559 --> 46:04.140
talking okay ? Um It is large . It is

46:04.140 --> 46:06.307
the largest phenomenal terms . As , as

46:06.307 --> 46:08.473
the deputy said , in real terms . No ,

46:08.473 --> 46:11.010
it is not as large as that peak of

46:11.090 --> 46:13.740
where the Iraq surge was still in place

46:13.740 --> 46:15.851
in the Afghanistan surge was coming .

46:15.851 --> 46:18.073
You might remember at that time , which

46:18.073 --> 46:19.851
is about 2008 and nine , we had

46:19.851 --> 46:23.810
supplementals In $2008 over a

46:23.810 --> 46:26.180
$150 billion dollars of supplemental

46:26.180 --> 46:29.130
funding on top , which was almost like

46:29.130 --> 46:31.241
a one third expansion of the , of the

46:31.241 --> 46:33.352
base defense budget at that time . So

46:33.352 --> 46:35.519
in real dollars , that was larger than

46:35.519 --> 46:37.630
this , that was north of $900 billion

46:37.630 --> 46:39.680
in today's budget . But going back

46:39.690 --> 46:41.746
prior to that , this would basically

46:41.746 --> 46:43.912
think put you in the largest range and

46:43.912 --> 46:46.079
sort of the post Vietnam all volunteer

46:46.079 --> 46:48.540
force era excluding war type

46:48.540 --> 46:50.770
supplementals . We had the one year

46:50.770 --> 46:52.659
peak for Desert Storm . You might

46:52.659 --> 46:54.603
remember and then the Iraq kind of

46:54.603 --> 46:56.603
Afghanistan surge . But in terms of

46:56.603 --> 46:58.603
basic , you know , baseline defense

46:58.603 --> 47:00.714
budget , this , this is the largest .

47:00.714 --> 47:02.937
And again , there is no Ukraine at this

47:02.937 --> 47:05.680
time to compare to on , on the balloon ,

47:05.690 --> 47:09.480
we did add some funding uh late in the

47:09.480 --> 47:11.313
process . Of course , the events

47:11.313 --> 47:13.480
occurred late in the process , late in

47:13.480 --> 47:15.036
the process of our build uh

47:15.036 --> 47:17.091
specifically on on what I would call

47:17.091 --> 47:19.600
sensing and analysis in that particular

47:19.610 --> 47:23.050
uh set of altitudes and phenomenology .

47:23.050 --> 47:25.217
We already had an admiral can speak to

47:25.217 --> 47:27.439
this domain awareness , I think is that

47:27.439 --> 47:29.439
I think you used the correct term ,

47:29.439 --> 47:31.439
much broader aperture , right ? And

47:31.439 --> 47:33.606
cruise missiles are the things we , we

47:33.606 --> 47:35.661
care about probably the most in that

47:35.661 --> 47:37.772
space of looking at our airspace . So

47:37.772 --> 47:39.994
in that broader category , I don't have

47:39.994 --> 47:39.790
a number off the top tip of my tongue

47:39.790 --> 47:41.846
of the larger amount that we spend .

47:41.846 --> 47:44.130
But we on this particular niche , if

47:44.130 --> 47:46.241
you will , we did add some funding to

47:46.241 --> 47:48.580
try and refine some capabilities on the

47:48.580 --> 47:48.890
back

47:48.890 --> 47:53.570
end ,

47:54.820 --> 47:58.400
right ? And in terms of largest ever ,

47:58.400 --> 48:00.600
I will just go to the way back machine

48:00.600 --> 48:02.600
prior to Reggie Jackson or myself .

48:02.600 --> 48:04.767
World War Two , we were spending about

48:04.767 --> 48:07.780
a third of our GDP on , on defense Just

48:07.780 --> 48:09.780
to go back to the balloon . There's

48:09.780 --> 48:11.950
significant investments . Uh and I

48:11.950 --> 48:14.117
think the controller did a good job of

48:14.117 --> 48:16.228
sort of characterizing those about 90

48:16.228 --> 48:18.450
million dollars going into the budget .

48:18.450 --> 48:20.283
Um But I would tell you that the

48:20.283 --> 48:22.339
sensors we have today are capable of

48:22.339 --> 48:24.561
seeing high altitude balloons , they're

48:24.561 --> 48:26.450
capable of tracking them . It's a

48:26.450 --> 48:28.561
matter of tuning and , and optimizing

48:28.561 --> 48:31.420
those systems to try to get after all

48:31.420 --> 48:34.100
forms of intrusions into our airspace .

48:34.100 --> 48:36.100
So we've been very focused on hyper

48:36.100 --> 48:38.980
sonics and those uh cruise missiles ,

48:38.990 --> 48:40.990
those types of things that we think

48:40.990 --> 48:44.580
we're um on the high end fast moving

48:44.590 --> 48:46.757
threats and , and tuning for something

48:46.757 --> 48:48.757
that's much slower like a balloon .

48:48.757 --> 48:50.812
That's part of what all this will go

48:50.812 --> 48:52.979
into we've got over the horizon radars

48:52.979 --> 48:55.034
that have been invested in for those

48:55.034 --> 48:56.979
will be fielded in the in the near

48:56.979 --> 48:59.170
future . Uh And so , you know , those

48:59.170 --> 49:01.220
investments are ongoing in order to

49:01.220 --> 49:03.460
enhance our overall defense of the

49:03.460 --> 49:05.920
homeland , which is extremely important

49:05.920 --> 49:08.390
and is it number one N D s priority ?

49:08.390 --> 49:10.279
But also it flows throughout this

49:10.279 --> 49:12.223
budget . I think you can see those

49:12.223 --> 49:14.334
investments coming online . Alright ,

49:14.334 --> 49:15.630
thank you . That concludes our briefing .